Capitol Investment Corp. V — SPAC Merger (April 2021)
49 slides from Capitol Investment Corp. V's SPAC merger presentation, Apr 16, 2021
Slide 1: Doma is architecting the future of real estate transactions
D o m a i s a r chi t ec t ing t h e futu r e o f r ea l e s t a t e transactions. — We deliver instant, digital home ownership experiences. 20 1 6 – 2021 M a y 202 1 +
Slide 2: Disclaimer
Disclaimer This presentation is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination (the "potential business combination") between Doma Holdings, Inc. ("Doma") and Capitol Investme
Slide 3: Financial Information; Non-GAAP Financial Measures
Financial Information; Non - GAAP Financial Measures The financial information and data contained in this presentation is unaudited and does not conform to the requirements of Regulation S - X. In addition, all Doma historical financial information included herein is preliminary and subject to chang
Slide 4: Business Overview Agenda
B u s i n e ss O v e r v i e w M a x Simk o f f F o u n de r a n d C h i e f E x e cuti v e O ff i ce r Pr o d u c t a n d T e c h n o l o g y Ha s an R i z vi C h i e f T e c hno l o g y O ff i c e r A n d y M a h d avi C h i e f D ata Sci e n ce O ff i ce r Operations C h r i s t o p h e r M o rr
Slide 5: Key Investment Highlights
K e y I n ve s t me n t H i g h l i g h t s Disrupting a Large, Antiquated Market dominated by commoditized products S t r o n g M a r k e t T r ac t i o n i n trod u c e d i n 2 0 1 8 a n d a l r e a dy f u e l e d by m a r q u ee c li e n ts A C l e a r Pa th t o S u s t a i n e d G r o w th and s
Slide 6: Technical and Operational Expertise
Technical and Operational Expertise We are building with the right mix of N o ama n A h m a d C h i e f F i n an c i al Offi c e r M a x Simk o f f Chief Executive Officer Ha s an R i z vi Chief Technology Officer C h r i s t o p h e r M o rr i so n Chief Operating Officer M in i P eiris C h i e f M
Slide 7: World-Class Board Members and Top-Tier Advisors
World - Class Board Members T o p - T ie r A d v i so rs Matthew E. Zames Former COO J . P . M o rg a n C h a s e & C o . Larry Summers Former Treasury Secretary U . S . T re a s u ry Max Simkoff Chief Executive Officer Doma Karen Richardson Board Member B r i t i s h Pe t r o le u m Charles Moldow
Slide 8: Home Ownership Market
Home Ownership Market T i t l e & E s c r o w r e p r e se n t s a T A M o f $ 2 3 B 1 NEAR - TERM OPPORTUNITIES Appraisal E scr o w C l o se Warranty Home Search $86B Market 2 Loan $66B Market 3 Home I n s u ra n ce $100B Market 4 $8B Market 5 Title $16B Market $7B Combined Market $3B Market 6 Serv
Slide 9: Consumers Expect Instant Digital Experiences
B oo k N o w Hospitality O r d e r N o w B u y i t N o w Consumers Expect Instant Digital Experiences Entertainment R eta i l Dining F in a nce I n v e s t N ow S t r e am N o w
Slide 10: Residential Real Estate Is Just Now Joining this Revolution
R e s i d e nt i a l R e a l Esta t e i s Just Now Joining this Revolution Get Pre - A pp r o v e d Ins t a n t ly Get I ns u r e d Ins t a n t ly Get an Offer Ins t a n t ly Close the T r a n s a ctio n Instantly
Slide 11: A Process from the 1890s
Manual County Database Manual Preliminary Order Investigation Underwriting Report Lender & Title Co Fee Balancing Closing Document Nego tiat i o n & Payo ff s Docu ment s Nota riza t ion TITLE IN 3 – 5 DAYS CLOSING IN 30 – 50 DAYS A Process from the 1890 S W e r e b u W i l E t A i R t E a R l E l P
Slide 12: We Re-invented It All from Scratch
From 3 – 5 Days F r o m 3 0 – 5 0 D a y s Millions of Historical Transactions O v e r 1 00 Public Data Sources E x ce pti o n H a n dl i n g Centralized Operations Ops. Team F e e B a l a n c in g D o c u m e n t QC P O W E R E D B Y N L P Title M L - D ri v e n I n s tant Underwriting Algorithm P O
Slide 13: Our technology has shown it is capable of
Our technology has shown it is capable of (1) Wallet share applies only to the Direct Channel business in states in which Doma is currently active. (2) Pull - through rate is defined as the percentage of mortgage applications that are opened that result in funded loans. 21 % 100% Wallet Share 1 Sinc
Slide 14: Product & Technology
doma Product & Technology
Slide 15: Traditional Path
Traditional Path Or d er Title E XAM IN E GENERATE CO MMI T M E N T C URE U P D A T E CO ND U C T D I SBU R S E R E C O R D F I NA LI ZE SCHEDULE G E NE R A T E
Slide 16: Doma Intelligence replaces large portions of the Title & Closing process
Doma Intelligence replaces large portions of the Title & Closing process with Data Science technology DO M A E S C R O W Steps Re m o v ed DO M A C L O S E 1 5+ 1 0+ Steps Re m o v ed DO M A T I T L E INSTANT Clear to Close O r d e r T i t l e Platform Components U n d e r wri t i n g Collaboration
Slide 17: Data science & machine learning drive Doma Intelligence Platform
Data science & machine learning capabilities drive core areas of Doma Intelligence Platform Co m po n e n t s U n d e r w r i t i n g Collaboration Documents C o mi n g S oon Money Flow Decision science and ML algorithms instantly underwrite ~80% of refi orders using hundreds of title & property dat
Slide 18: Doma Title delivers speed & machine learning-enabled decision-making
Dom a Ti t l e d e l i ve r s s p e e d & machine learning - enabled decision - making Do m a Ti t le 3 – 5 D a y s < 1 D a y T r a d i t i o n a l T i t le • Long wait times for search package • Search Package often contains unnecessary information that can delay the search • Curative work is requi
Slide 19: What Data Science Transformers did for Google's Search product
What Data Science Transformers did for Google's Search product ... 2 0 1 9 b ra z i l tr a v ele r t o U S ne e d a v i s a Before Google's search function only examined individual words without comprehending the relationship amo n g t h e m Af t e r Google's search function can comprehend the intri
Slide 20: What we're doing for Title & Escrow
… w e ’ r e doi ng f o r T i t l e & Esc r o w T r a d i t i o n a l E s c r o w Human - powered, error - prone process with significant duplication D o ma I n t e llig e n ce Instant closing disclosure Automatically Recognizes each fee Automatically Categorizes and corrects Instantly Sends back to
Slide 21: Word vectors and meaning
The closer those numbers to each other, the closer the meaning Allow gigantic training corpus (Wikipedia) to determine what numbers should be If machines only understand numbers… How can they "get" meaning? We must assign each word a set of scores Each set is called a “vector” 1 2 3 4 1 2 3 4 4 3 2
Slide 22: Operations
doma Operations
Slide 23: Industry standard operating models
“Industry standard” operating models Both with drawbacks “ Si ng l e Sea t ” Unscalable model reliant on a sole professional to manage the life of a closing “ A ssem b l y L i ne ” Inflexible model dictating the same customer experience for every closing
Slide 24: An industry first, centralized operations model
An industry first - of - its - kind, centralized operations model We take a fundamentally different approach Do m a T echn o lo g y Removes significant portions of work entirely and intelligently routes any complex exceptions Inn o v a t i v e C us t o m e r D eli v e r y M o d els tailored to the n
Slide 25: Machine intelligence + operations reduces minutes per file
Machine intelligence + operations Drastically reduces minutes per file across every activity in the process… Minutes Per File metric on Doma Intelligence 1 00% 4 6 % 22% J u n e 20 2 0 D e c 2 0 20 Q 4 2 0 2 3 E 78% D E C R E A S E E ff i c ie n c y w i t h q u a li t y a n d s c a la b ili t y As v
Slide 26: Go-to-Market Approach
doma Go-to-Market Approach
Slide 27: Incumbents distribute their offering in an undifferentiated way
(1) 2020 forecasts from American Land Title Association, Mortgage Bankers Association and internal estimates. Incumbents distribute their antiquated offering in an undifferentiated way $23 B Ma r k et $7B Refinance + $16B Purchase 1 L e g a c y I n c u m b e n t s with 80% market share T r aditio n
Slide 28: Our technology re-defines the go-to-market approach
C o m p e t it i v e Pricing V a l u e - b a s e d Selling Digital D ist ri b u t ion * P r oje c t e d 4 Q 23 g r o s s p r e miums & f ee s p e r or de r Our technology and products re - define the entire go - to - market approach... A F as t e r C l ose E N A B L E S A T ech - F i r s t App ro a
Slide 29: A solution for every market segment
L o c a l R e f ina nc e 2 En t e r p r i se R e f ina nc e L o c a l Pu r c h as e 1 En t e r p r i se Pu r c h as e and the opportunity to transition customers to higher - volume relationships ...with a solution for every market segment 1 1 . 4 K R e a l t o r s 8 . 5 K L o a n O ff ice rs + 8 m o
Slide 30: Dual Go-to-Market Approach
Addressing the various market segments with a D u a l Go - t o - M ar k e t App r oach ? ? ! $$$ Local Lead - based Enterprise Account - based Identify E xpa n d Engage Advocate Educate Nurture Qualify Transact
Slide 31: Enterprise channel: account targeting & wallet share expansion
• W e lc om e K it • Personalized Resource Center • Gamification to drive adoption • Account - specific newsletter • Account Day for r e giona l e x pa n s ion • Technical evaluation of integration options • Customer Advisory Board participation • Case studies shared across regions & teams • Quo t e
Slide 32: Local channel: growth fueled by deepening, expanding & innovating
L O C A L C H A N N E L : Growth fueled by deepening , e x pand i ng , & i nn o v ati ng market approach Deepen sales capacity to capture share in e x i s t ing m a r k e t s 1 Expand into new geographic markets, specifically high - growth urban areas 2 3 Innovate go - to - market strategy in new an
Slide 33: Local channel: proven playbook from tech sector
E d u c a t e p r o s pe cts t h r o ugh d ig it a l i nte r a cti o ns -- > d r i v e t o m i c r o s i t e a n d / o r p o w e r r e ta r ge ti n g Di gi t a l O u t r e a c h Microsite interaction to secure c o n t a ct c o mmit men t & d et a ils fo r sales outreach Microsite: Education Simple d
Slide 34: Planned expansion will accelerate organic growth
5 7 % G W P 2 > 99% G W P 2 , 3 Planned expansion will accelerate organic growth and unlock market share potential in key strategic geographies for all segments G r o wi n g ac r os s t h e map... E O Y 2023 EOY 2020 3 S tra te g i c a n d e n t e r p ri s e licensed and operational Lo c a l sa l e
Slide 35: Financial Overview
doma Financial Overview
Slide 36: Our Technology Will Drive Our Margin Advantage
O u r T e chnolog y Wi ll Drive Our Margin Advantage Segment EBITDA as % of Retained Premiums and Fees² Pre - Corporate Support EBITDA as % of Retained Premiums and Fees² ³ 23% Traditional T it l e I n s u r e rs Average 1 42% Q 4 2 0 23 E M a c h i n e int e llig e nc e d r i v e s reduction in dir
Slide 37: Superior Technology Drives Operating Leverage
S u pe r io r T echn o lo g y D r i v es O p e r a t i ng L e v e r a ge Doma solutions reduce minutes spent per file, significantly decreasing direct labor expense, dr i v i n g ma r g i n e x p a n s io n Order V o l u m e s R eta i n e d P r e m i u m s a n d F ees D i r ec t F u l f ill m e n t
Slide 38: Unit economics by channel
(1) Direct non - labor expenses, which include provision for claims, excludes a one - time reserve release benefit of $1.6M in March 2021 (2) Reflects expenses per order associated with mature clients. Actual direct labor expenses, including costs of new customers being onboarded, was $383 per order
Slide 39: Clear path for accelerated growth
A d j. C lo s e d O r d er s 1 , 2 Clear path for accelerated growth 136,880 88,616 58,875 212,199 33 0 , 4 7 3 2 0 19 2020 20 21 20 22 20 23 5 4 % C A G R (1) Direct order volume (2) Between January 2019 and December 2020, Doma closed 40 branches as the company integrated and rationalized its branc
Slide 40: Performance Highlights
Performance Highlights Excludes Net Proceeds from Transaction $ 226 $3 19 $ 464 2 0 21 E 2 0 22E 2 0 23 E 4 3% C A G R $ 8 9 $ 17 1 $3 07 39.5% 5 3 . 5 % 6 6 . 2 % 2 0 21 E 2 0 22E 2 0 23 E $M $M ( 2 9 . 4 % ) ( 3 . 3 % ) 1 9 . 2 % 2 0 21 E 2 0 22E 2 0 23 E 35% 5 - Year Target R e t ai n e d P r e m
Slide 41: Unaudited Summary Financial and Other Information
Unaudited S u mma r y Fi nanc i a l an d O t h e r In f ormation ($ in millions) 2019A 2020A 2021E 2022E 2023E C lose d O rders 1 74,017 92,389 136,880 212,199 330,473 Av g R eta in e d Prem i um s & Fee s Pe r Or d e r 1 $1,921 $1,547 $1,360 $1,306 $1,272 GAA P R evenue $358.1 $409.8 $416.4 $514.6
Slide 42: Multiple Vectors for Growth
doma Multiple Vectors for Growth
Slide 43: Substantial Untapped Growth Potential
Substantial Untapped Growth Potential I n o r g a n ic acq u i s itio n o pp o r t u n ities Acquisition of independent title agencies to meaningfully expand market share I n v e st m e nt i n e x i st i ng c h ann el s Invest in salesforce expansion, geographic expansion and marketing to drive cont
Slide 44: Fuel More Organic Growth in & Beyond
F u e l M o r e O r g a n i c G r o w t h i n 2 0 22 & B e y o n d w i th i n c r e a s e i n s al e s a n d m ar k e ti n g i n v e s tm e n t A c qu i r e T i t l e A g e n c i es and integrate them into the Doma Platform Accelerating Growth of Our Core Title Business Organic and Inorganic Strateg
Slide 45: An Instant Closing Experience Accelerating Delivery of Our Vision
An Instant Closing Experience Accelerating Delivery of Our Vision An “afterthought” with a pai nf u l u s e r e x p er i e n c e $ 3 B Ma r k e t 2 H om e W a r r a nt y $ 8 B Ma r k e t 1 Appraisal Wi t h Doma : Seamless Today: Broken Appraisal process is separate from Title and can derail the clos
Slide 46: Self-funded plan vs. opportunity with SPAC proceeds
Existing self - funded plan assumes moderate capture with significant opportunity with SPAC proceeds Doma’s Revenue Market Share of the Title and Escrow Market 1 Illustrative Growth Levers from Transaction Proceeds Cl ea r pa t h t o $ 1 . 5 B + o f R e t ai n ed P r e m i u m & F ee s w i t h S P A
Slide 47: Our vision is to revolutionize the homeownership experience
O u r v isi o n i s t o r e v o l u ti on i z e the homeownership experience From our reimagination of the title, escrow, and closing experience O u r p a t h t o mar k e t d o m i n an ce B e c o m e a c at e g o r y lea d er i n $ 2 3B t i t l e a n d e s c r o w m a r k e t De li v e r i n s t a
Slide 48: Appendix
doma Appendix
Slide 49: Reconciliation of Non-GAAP Metrics
Reconciliation of (Unaudited) non - GAAP Metrics Historical Projected ( $ i n millions ) 2019A 2020A 2021E 2022E 2023E R evenu e (GAAP ) $358.1 $409.8 $416.4 $514.6 $665.3 Less : Prem i um s Retaine d b y Thir d Part y Agent s ($178.3) ($220.1) ($190.0) ($195.7) ($201.5) R etaine d Premium s an d Fe
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